Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. ALA SpA's
Operating Income
for the
six
months ended in Jun. 2025 was €21.8 Mil. ALA SpA's Interest Expense for the
six
months ended in Jun. 2025 was €-3.5 Mil.
ALA SpA's interest coverage for the quarter that ended in Jun. 2025 was 6.29.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for ALA SpA's Interest Coverage or its related term are showing as below:
MIL:ALA'
s Interest Coverage Range Over the Past 10 Years
Min: 3.43 Med: 4.45 Max: 5.43
Current: 5.43
MIL:ALA's Interest Coverage is not ranked
in the Industrial Distribution industry.
Industry Median: 6.22
vs MIL:ALA: 5.43
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
ALA SpA Interest Coverage Related Terms
ALA SpA Interest Coverage Historical Data
* Premium members only.
The historical data trend for ALA SpA's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MIL:ALA vs GWW, FAST, FERG: Interest Coverage Comparison
For the Industrial Distribution subindustry, ALA SpA's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ALA SpA Interest Coverage vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, ALA SpA's Interest Coverage distribution charts can be found below:
* The bar in red indicates where ALA SpA's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ALA SpA (MIL:ALA) has a Interest Coverage of 6.29 as of Jun. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ALA SpA and its competitors. This is 41% above median its historical median of 4.45. Over the past decade, ALA SpA's Interest Coverage has ranged from 3.43 to 5.43.
Is ALA SpA's Interest Coverage too high?
ALA SpA's current Interest Coverage of 6.29 is 41% above median its 10-year median of 4.45. Over the past 10 years, this metric has ranged from a low of 3.43 to a high of 5.43. The Industrial Distribution industry median Interest Coverage is 6.22. ALA SpA's value of 6.29 is 1.1% above this industry median. Overall, ALA SpA has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does ALA SpA's Interest Coverage compare to GWW and FAST?
ALA SpA's Interest Coverage of 6.29 can be compared against companies in the Industrial Distribution industry. The industry median Interest Coverage is 6.22. ALA SpA's value of 6.29 is 1.1% above this benchmark. Historically, ALA SpA's own Interest Coverage has ranged from 3.43 to 5.43 over the past decade. While the company's 10-year median is 4.45 vs. the industry median of 6.22, ALA SpA has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Industrial Distribution company?
The median Interest Coverage among Industrial Distribution companies is 6.22, based on 133 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ALA SpA's current Interest Coverage of 6.29 is 1.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ALA SpA and its competitors. For the Industrial Distribution industry, the median Interest Coverage is 6.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALA SpA's current Interest Coverage is 6.29, which is 41% above median its own 10-year median of 4.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALA SpA stock overvalued right now?
ALA SpA (MIL:ALA) has a current Interest Coverage of 6.29. The stock's GF Value™ is €30.35, compared to a current price of €36.00 — trading 18.6% above its estimated fair value. The current Interest Coverage is 6.29, which is 41% above median its 10-year median of 4.45 and 1.1% above the Industrial Distribution industry median of 6.22. ALA SpA's overall GF Score™ is 66/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For ALA SpA (MIL:ALA), the current Interest Coverage is 6.29 as of Jun. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ALA SpA (MIL:ALA) Overvalued in 2026?
Based on GuruFocus' analysis, ALA SpA stock appears to be overvalued.
The current stock price of €36.00 is trading 18.6% above its estimated GF Value™ of €30.35.
Key valuation signals for MIL:ALA:
Interest Coverage: 6.29 (41% above median its 10-year median of 4.45)
GF Value™: €30.35 vs. price of €36.00 (18.6% above fair value)
Industry Position: 1.1% above the Industrial Distribution median
No single metric tells the full story. See the MIL:ALA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ALA SpA is a distributor and supply chain solutions provider to the industrial markets. It is involved in the distribution of components and equipment for use in the civil and military aeronautical sectors. The company also offers integrated logistics services for the rail, energy, and marine sectors. Its various product offerings include power systems, oxygen systems, gate valves, protection valves, fasteners, regulators, and others. Geographically, the company derives maximum revenue from its business in Italy and the rest from other parts of the European Union and other regions.
66GF Score
Get the complete analysis for MIL:ALA
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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